India Inc’s deal activity has witnessed a significant downturn in the month of September this year, with merger and acquisition transactions volume as well as private equity deals, together plunging nearly 30 per cent in just one month.
The total number of M&A deals announced in the month of September 2008, stood at 35 with a total announced value of USD 3.69 billion, while, there were 31 deals amounting to USD 4.63 billion in August, a decline of 20.30 per cent, Global consultancy firm Grant Thornton said in its latest issue of Dealtracker.
Similar trend was witnessed in the private equity investment scenario, as only 16 deals with total value of USD 600 million were announced, against 31 deals amounting to USD 944 million in the previous month, a dip of 36.44 per cent, Grant Thornton added.
However, in year-on-year corporate India has witnessed an upsurge in value terms as there were 71 M&A transactions with a total announced value of USD 0.84 billion and 29 PE deals with a total value of USD 0.99 billion in September 2007.
Total number of M&A deals during the first nine months of this year stood at 381, with an announced value of USD 26.43 billion, against 527 deals amounting to USD 49.33 billion during the corresponding period in 2007, the report added.
The most significant deals during this period have been Daiichi Sankyo Co increasing its stake to 58 per cent through open offer in Ranbaxy Laboratories for USD 1.70 billion followed by UAE based Emirates Telecommunications buying 45 per cent stake in Swan Telecom for USD 0.90 billion.
While Suzlon Energy increasing its stake to 86 per cent in REpower Systems AG for USD 0.39 billion was the third most significant M&A deal of September, the report added.